Vancouver city council is proposing increases in property taxes and utility fees for 2014 below the rate of inflation.

The proposed increases, 1.9 per cent for property taxes and one per cent for utilities such as water, sewer and garbage collection, come just before Mayor Gregor Robertson’s Vision Vancouver administration seeks re-election.

The proposal, which is expected to be ratified next Tuesday, would boost the city’s overall operating budget to nearly $1.2 billion, an increase of $29.6 million. Of that, more than $5 million would go toward new priorities, including more money for social inclusion, culture and recreation, Greenest City initiatives, safety and emergency planning and digital services. The rest involves inflation and program adjustments.

The details are contained in a massive 220-page operating and capital plan document the city unleashed on the public after some people, including opposition Coun. George Affleck, complained about the city not being transparent with its budget process.

The new increases, if approved, would see property taxes for a residential property worth $1 million go up by $36, and utility fees another $29.

Vision Vancouver Coun. Raymond Louie, the chair of the city’s finance and services committee, said the proposed increase is a bargain compared to proposed tax increases in other Metro Vancouver municipalities. Surrey will raise its property tax rates by 2.9 per cent in 2014.

Last year Vancouver was the city with the second-smallest tax increase in Metro, 1.36 per cent, behind West Vancouver.

Louie credited the Vancouver Services Review Program, which has identified $53 million in unnecessary programs and expenditures, for allowing the city to keep tax increases low.

Source: Jeff Lee, Vancouver Sun

A Middle Eastern royal’s purchase in May of the penthouse suite and unit below it at Vancouver’s five-star Fairmont Pacific Rim hotel for $40 million was the most expensive condominium purchase in Canada.

The hotel is in Coal Harbor, a community in Vancouver West, one of Canada’s most expensive home-buying areas. The property is one block north of a street that residents in the 19th century called Blueblood Alley for its wealthy mansion-owners.

“Vancouver has been fuelled tremendously in the last couple of years by high-end wealthy Chinese and Hong Kong buyers,” Malcolm Hasman, the luxury real estate agent who brokered the sale of the Fairmont penthouse unit to the Middle Eastern client, said in a Sept. 16 phone interview. This year probably will be Hasman’s third-highest in sales, after 2012 and 2007, with more than $200 million in luxury real estate sold, he said.

“There’s more money around today than there’s ever been in the high-end market. And where’s it coming in from? The Middle East, China, Asia.”

The oceanfront apartment was also among about 131,324 house and condo transactions in the past three months, up 6.1% from the same period a year earlier and defying the predictions of the Toronto Real Estate Board and the Bank of Montreal that the market is cooling. Analysts and investors including Bank of Nova Scotia and Sun Life Financial Inc. now say it represents the excesses of a market that may be peaking.

“I’m not bullish on Canadian housing,” said Stephen Groff, who helps oversee $7 billion in assets at Cambridge Global Asset Management unit of CI Investments Inc., in a Sept. 13 interview. “It’s just people seeing rates starting to go up and they rush to get the deal done. It isn’t indicative of an improving market.”

The sales pop, driven by wealthy foreign investors and Canadians jumping into the market before expected mortgage rate increases, is at odds with Canada’s sluggish growth. Fuelled by consumers carrying record levels of personal debt and a high unemployment rate, there’s growing concern that the housing decline when it comes will be harder than the “soft landing” predicted by Bank of Canada Governor Stephen Poloz and Scotiabank Chief Executive Officer Richard Waugh.

Purchases of multimillion-dollar luxury properties on the west coast and condo units in Toronto’s 260 towers helped drive debt-to-household income to a record level in the second quarter. Mortgage borrowing rose 1.7% to $1.11 trillion, according to Statistics Canada, and debt such as mortgages and credit cards increased to 163.4% of disposable income, compared with a revised 162.1% in the prior three-month period. That’s among the highest in the world and compares with 91.9% in the U.S., down from a record 112.7% in 2009.

Home buying slowed last year after regulators tightened borrowing qualification standards. It has picked up again as consumers take advantage of historically low mortgage rates.

The government shortened amortizations in July 2012 to 25 years from 30 years as benchmark interest rates continue to be anchored at 1% in the longest pause since the 1950s. The Office of the Superintendent of Financial Institutions also introduced tougher standards for lenders.

The result of the efforts was short-lived. In August last year, home sales slipped 14% across the country led by Vancouver’s 31% dip, according to data from local real estate boards. The total values of August, 2012 purchases was 24% lower than this year’s $8.2 billion.

In comparison, Toronto residential real estate sales last month rose 21% from a year ago, according to the Toronto Real Estate Board, or TREB, and Vancouver existing home sales surged 53%, said that city’s board.

Source: Katia Dmitrieva, Bloomberg News

Vancouver Sun January 14th, 2012

1704 – 550 Taylor Street, Vancouver

Type: 2-bedroom, 2-bathroom apartment
Size: 785 sq. ft.
B.C. Assessment, 2012: $498,000
Listed for: $499,000
Sold for: $490,000
Sold on: Nov. 30
Days on market: 42
Listing agent: Natalia Antosh at HomeLife Benchmark Realty
Buyers agent: Seth Baker at Royal LePage Westside

The big sell: Chinatown, with its unique Vancouver heritage, has a growing interest among buyers who enjoy the eclectic neighbourhood and access to downtown. Buyer’s agent Seth Baker reports that his clients grew up in the area, and having witnessed its ongoing evolution, were looking to return. This corner unit in the Taylor building impressed them with its 17th-floor panoramic vistas over Chinatown, the docks and the North Shore. In fact, every window has a view. Since its construction in 2005, the home had been totally redone with an upscale kitchen, track lighting and concrete floors. The dining room was built to entertain, with 7-by-17-foot dimensions that will accommodate “house-sized” furniture. There is a den, separate storage both inside and outside the apartment, and parking. The SkyTrain, Costco, Andy Livingstone Park, and Tinseltown are all within walking distance.

305 — 1425 Cypress Street, Vancouver

Type: 1-bedroom, 1-bathroom apartment
Size: 700 sq. ft.
B.C. Assessment, 2012: $392,500
Listed for: $409,000
Sold for: $410,000
Sold on: Dec. 5
Days on market: 6
Listing agent: Pamela Smith at Macdonald Realty
Buyers agent: Amanda Crosby at RE/MAX Select Properties

The big sell: Properties that come on the market in the Kits point neighbourhood usually attract attention because of their proximity to the beach, downtown and the amenities on Fourth Avenue. Listing agent Pamela Smith reports that the first — and only — open house that she held for this loft-style condo was packed with potential purchasers. A multiple-offer situation resulted in an accepted, subject-free bid slightly over the asking price. In addition to the location of the home, the main attraction was in the renovated interior. It has wall-to-wall California closets in the 14-by-17-foot mezzanine bedroom, two skylights, a remodelled bathroom with an extra-large soaker tub, undermount sinks, granite countertops, an open-plan kitchen with a centre island that also houses an electric fireplace built into the end-facing living room, a walk-in pantry, and new hardwood flooring and carpet throughout. The building is pet- and rental-friendly.

1159 West Keith Road, North Vancouver

Type: 5-bedroom, 5-bathroom detached
Size: 4,587 sq. ft.
BC Assessment, 2012: $1.123 million
Listed for: $1.188 million
Sold for: $1.125 million
Sold on: Dec. 14
Days on market: 78
Listing agent: Karim Virani at Virani Real Estate Advisors
Buyers agent: Carole Yang at Sutton Group – West Coast Realty

The big sell: This impressive Pemberton Heights view property was built in 1983 and renovated in 2007, presenting the owners with accommodation that can suit any living situation. The four levels hold a plethora of bedrooms and bathrooms, as well as two kitchens, a family room, office, storage room and separate living and dining areas, all finished to exacting standards. The uppermost floor has a modern open-concept kitchen with stainless steel appliances and custom cabinetry. The southern exposure and multiple decks ensure that all occupants can enjoy the views and the garden on the 50-by-126-foot lot. With a potential rental income of $5,000-plus per month, this could be a good investment opportunity. Pemberton Heights is an area of North Vancouver east of Capilano Road and south of the Trans-Canada Highway, with easy access to Lions Gate Bridge and numerous schools, parks and trails.

© Copyright (c) The Vancouver Sun